Prime Minister Mark Carney said from Ottawa that Canada intends to abide by the commitments and engagements it made under the United States-Mexico-Canada trade agreement - including the pledge not to pursue free trade agreements with non-market economies. Carney's remarks came in response to a U.S. statement that it would impose a 100% tariff on Canada if Ottawa were to enter a trade deal with China.
Carney told reporters that Canada has no plans to negotiate a free trade agreement with China or any other non-market economy. At the same time, he noted that Ottawa has taken steps to address particular issues that have emerged in trade relations with China over the last couple of years.
Explaining changes to Canada’s approach, Carney said the government is "going back to the future" in areas such as electric vehicles, agriculture and fish products - indicating additional protections for those sectors. He framed these moves as targeted adjustments rather than the pursuit of a comprehensive free trade agreement with a non-market economy.
Carney also referenced a recent trip to China earlier this month. The visit, he said, was intended to diversify Canada’s trade ties and to help resolve tariff issues with what the government characterizes as its third largest trading partner. Those efforts, according to Carney, are focused on resolving specific points of friction and supporting export sectors rather than negotiating a broader market-opening pact.
Carney’s comments come amid heightened rhetoric over trade between Canada, the United States and China. The potential for unilateral tariffs by the United States - raised publicly by the U.S. side as a response to any Canadian-China deal - adds an element of immediate political and commercial uncertainty for exporters and policymakers.
Officials and industry participants will be watching actions taken to protect domestic producers in EVs, agriculture and fish products, as well as the outcomes of Ottawa’s engagement with Chinese counterparts. Those developments will influence how Canada balances commitments under the trade agreement with efforts to address bilateral trade disputes and to diversify export markets.
Source note: Remarks summarized from statements by Prime Minister Mark Carney in Ottawa and from his recent visit to China earlier this month.